The Analysis of Organization and Management of Investment Processes in the Region

Abstract

The beginning of economic reforms in Russia was characterized not only by the forced accumulation of private capital during privatization, but also by reduction of fixed and circulating capital of the enterprises, increase of different manifestations of economic crisis. These processes were combined with the inflation. Slump in production in the industry predetermined lack of investments into other branches of national economy and social sphere. Decrease in the level of investment processes management has recently led to introduction of ineffective long-term projects under conditions of uncertainty and risk. Fast development of Russia economy requires intensive foreign trade activities and attraction foreign investments into Russian economy. Effective development of the economy, exchange of experience, international investment cooperation and integration in international financial-economic system depend on how Russia and its subjects of managing participate in foreign trade transactions and what measures on investment climate improvement are undertaken. Social and economic and others factors influence investment process. The greater part of the projects is carried out under conditions of shortage of information about the object and its external and internal investment environment. It also results in higher degree of risk and unwillingness of investors to invest resources in restoration and economy development as a whole and in investment projects. Possible investors are interested to invest practically all funds in financial assets. Now, the most powerful forces resist to the factor of inflation reduction favorable for investment: appearance and prompt growth of services sectors almost not developed before which distract the resources from production of goods (except for shadow economy and some export-oriented branches). The market is quickly formed in sphere of circulation and finance but in production of goods it grows slowly including its investment segment.